COIMBATORE: The Southern India Mills' Association (SIMA) has expressed concern over the hike in cotton prices sold by the Cotton Corporation of India (CCI).

Association chairman J. Thulasidharan has said in a release that cotton prices remained above the minimum support price since the beginning of the season (October 2009). The market price of Shankar 6 was Rs. 3,600 a quintal as against the minimum support price of Rs. 2,850. Hence, the CCI had not taken up “MSP operations”. It entered the market for regular cotton trading and the association had received complaints that the Corporation was not supplying even one-third of the agreed quantity of cotton to the buyers at a particular price. It had, instead increased the prices.

Mr. Thulasidharan said that on March 22, the CCI increased the price for Shankar 6 by Rs. 700 a candy. This had resulted in other cotton traders also increasing the prices.

The entire textile value chain was complaining of spiralling yarn prices though the spinning sector was unable to pass on the entire hike in cotton prices. He appealed to the CCI to avoid speculating on cotton prices so that the entire textile chain was able to sustain its competitiveness.

Mr. Thulasidharan pointed out that as on March 15 this year, the Office of the Textile Commissioner had registered 67.58 lakh bales of cotton for exports as against the Cotton Advisory Board's estimate of 55 lakh bales for 2009-2010. Already, 43.8 lakh bales had been shipped.

Courtesy - Hindu